Vending

Danone lifts Q4, FY 2022 sales boosted by price hikes, FY earnings fall

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February 22, 2023

Sales for Danone S.A. in Q4 2022 topped estimates boosted by higher prices, and the company plans to lift prices again this year, if necessary, according to a Yahoo Finance report. Price increases contributed 11.3% to fourth-quarter growth and 8.7% to annual revenue growth.

Q4 2022 earnings rose while FY earnings declined, according to an earnings release.

Highlights from the financial report include:

• Fourth quarter sales rose 7%, from €6.24 billion ($6.63 billion) in Q4 2021 to €7 billion ($7.43 billion) in Q4 2022, with an 11.3% contribution from price. On a reported basis, sales increased by 12.3%, benefitting from a positive forex impact of 3.87% and a positive organic contribution to growth of 1.7% by hyperinflation countries.
• North America sales rose 9.7% in Q4 2022, led by International Delight, Activia, Oikos and Silk.
• Europe sales rose 4%, driven by specialized nutrition in the comparative quarters.
• China, North Asia and Oceania sales rose 3.4%, led by specialized nutrition and essential dairy and plant-based products.
• Rest of the world sales rose 9.8%, led by price.
• EPS rose 3.6%, to €3.43 ($3.64).
• Full year net sales rose 12.9%, from €24.28 billion ($25.79 billion) in 2021 to €27.6 billion ($29.32 billion) in 2022.
• Full year net income fell from €1.9 billion ($2.02 billion) to €1.02 billion ($1.08 billion).
• Full year EPS fell from €2.94 ($3.12) to €1.48 ($1.57).

Shares traded today at $11.59 against a 52-week range of $9.05-$13.05.

"While 2022 was a year of unprecedented external challenges and volatility, for Danone it has also been a year of deep transformation and solid delivery," CEO Antoine de Saint-Affrique said in the press release.

The company expects 2023 sales to grow between 3% and 5% with moderate improvement in recurring operating margin.